skip to content
  1. Home
  2. >
  3. Investment Q&A
You can view 3 more answers this month. Sign up for a free trial for unlimited access.

Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: What is the story with DH?

SP was up yesterday supposedly due to the Q2 results, and today it did a 180 and took a big dive wiping out yesterday's gains and then some. I used to own gold and mining stocks and have seen this play many times in the past. I thought DH is main stream enough and big enough to not being played that way. If that is not the doing of some manipulators, what could be the possible reason for yesterday's pump and today's dump?

Thanks.
Read Answer Asked by Victor on July 29, 2016
Q: Can you explain more about CSU conference call and Q2 results? For a previous question on CSU you told that Revenue Estimate at $510 million and EBITDA @ 131 million (I am assuming these are CAD though wrongly printed as USD). However you later said EPS missed estimates by 50c. I felt this is a big miss. You also said stock may be week. However today CSU went up. Can you explain. I came out of my CSU position today and want to know if I have to re enter. If not can you suggest a better stock than CSU in tech sector?
Read Answer Asked by Vinod on July 29, 2016
Q: What I see from the last several quarters is a company that will not grow as fast as it did in previous years. Nevertheless, with revenue and originations up, moderate EPS should eventually appear. The company has a very low P/E, low payout ratio, rising dividends and decreasing share count. Is this morning's sell-off not a buying oportunity?
Are investors simply too fearful of the name to even look at the numbers and see some value? Or perhaps I am missing something here?


Regards
John
Read Answer Asked by john on July 28, 2016
Q: A recent negative article in Seeking Alpha by Timberwolf Equity Research raised a few points that I hope you can comment on. The company was not calling for a short on the stock so the article does not appear to be self serving, although that in itself is not much proof. So while the article appears to be based "on facts", it does not agree with your recent review of the company.

The article as best as I can understand it raises 4 points.

1. That Starbucks accounts for 35% of the company's sales (23% of revenue). They acknowledge the company does not state this but that they have figured it out.

2. Inside ownership. and therefore an alignment of management interests with that of other shareholders, is a mirage because the company has provided these particular shareholders with low interest loans that require the value of the stock as collateral and for the dividends to cover the principle repayment costs. Therefore, the company's management has an incentive to raise the dividend whether warranted or not.

3. Cash flow is miss-stated because the company excludes working capital changes as it only includes replacement capital expenditures and leaves out expansion capital expenditures (I won't pretend that I understand this). The upshot is that the company's cash flow is closer to $28 million rather than the $81 million stated by the company.

4. Share count is ever increasing because the company finances its takeovers with low interest convertible debentures which almost assuredly means that the debenture holders convert their holdings into stock. The authors estimate that this resulted in a 22% dilution in 2015.

Appreciate your insight into these matters.

Paul F.
Read Answer Asked by Paul on July 28, 2016
Q: I would like to cut my losses on BAD and buy something with more potential. My portfolio is balanced and this would be in my RSP account. What would you suggest?
So reassuring to be able to consult with you!
Ellen
Read Answer Asked by Ellen on July 27, 2016
Q: Hi, could you please comment on DH earnings. At the first glance, Revenue, EBITDA and FCF, all seem to have meet or beat estimates. Laser Pro renewals are still weak (as expected) but organic growth in other areas appear to be decent. Debt reduction seems to be a priority. How do you read their commentary on outlook ? DH stock has gone thro' quite a roller coaster, after past two quarterly reports. Any thoughts on reducing or adding to present position. Thanks
Read Answer Asked by rajeev on July 27, 2016
Q: Hi Peter & Ryan, not many companies report earnings on Fridays after the markets are closed for the weekend. Fiera Capital has just indicated their earnings release will be on Friday August 5th after the close with their conference call being held 3 days later on Monday August the 8th. I don't recall many companies reporting after the close on Friday but the few I remember doing so did not release good results. Am I being paranoid or do we holders of Fiera Capital have reason to be nervous? Your thoughts... Thanks. Mario.
Read Answer Asked by Mario on July 26, 2016
Q: Hello Peter and Team:
When I look at the two year chart of DHX's share price in the absence of any other info I just see "lower highs and lower lows". I know in the recent past you have mentioned the positives of management, growing dividend and library and even possibility of takeover some day and the negative of debt. I'm wondering if you believe that there will have to be a specific catalyst to turn this name and if so, what you think it might be? Is there any chance that getting to $1B market cap might be it(they must have been close before when the share price was nearing $10.00)?
Thanks,


















10
Read Answer Asked by Stephen R. on July 26, 2016
Looking for more? Sign up for a FREE 14 day trial! No credit card required

We invite you to sign up for a 14 day free trial of 5i Research!
Experience all the benefits and tools we have to offer; stock research, model portfolios, Q&A with our experts, and so much more. Join a community of like-minded investors today!